How to Protect Your Business

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In this webinar Simon Baldwin aims to highlight the importance of protecting your business and he will show you how to keep your business in business. Looking at Debt - Business Loan Protection, Key Person - Profit Protection, Ownership - Share Protection and Family - Relevant Life Plan. There is a link at the end of this deck to the associated blog and webinar recording. How to Protect your business.

Transcript of How to Protect Your Business

Page 1: How to Protect Your Business

In this webinar Simon Baldwin aims to highlight the importance of protecting your business and he will show you how to keep your business in business. Looking at Debt - Business Loan Protection, Key Person - Profit Protection, Ownership - Share Protection and Family - Relevant Life Plan.

There is a link at the end of this deck to the associated blog and webinar recording.

How to

Protect your

business.

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Business Protection

Simon BaldwinDirector of Simon Baldwin

Financial Planning LtdAssociate Partner Practice of St.

James’s Place Wealth ManagementThe Associate Partner Practice represents only St. James’s Wealth Management

Plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on The group’s wealth

management products and services, more details of which are set pout on the Group’s website www.sjp.co.uk/prodcuts. The St. James’s Place partnership and the titles partner and partner practice are marketing terms use to describe St.

James’s Place representatives

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Today’s Objective

• To highlight the importance of protecting your business

• Show you how to keep your business in business

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What is Business Protection?

• Debt - Business Loan ProtectionThe policy proceeds are used to help pay off any outstanding loans

the business may have.• Key Person - Profit Protection

The policy proceeds are paid directly to the business to be used to help replace a Key Person and cover the loss of profits that may occur. The policy proceeds could help the business to continue trading.• Ownership - Share Protection

On the death of a business owner the policy proceeds are paid to the remaining owners to buy the share of the business from the deceased's estate.• Family - Relevant Life Plan

A tax efficient Death in Service benefit for employees or Directors of a business. The policy proceeds are paid to the Trustees (employer) and the benefit is written under Trust for the life assureds’ beneficiaries.

The level and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends upon individual circumstances

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Debt - Business Loan Protection

• 57% of businesses have debt• Average amount is £344,000• 23% of this is credit card debt!• Directors loan

Source: Legal & General State of the nation’s SME report, March 2015

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Key Person - Profit Protection

• Your business may have 1 person responsible for the vast majority of sales revenue

• What happens to the sales revenue if they cannot work due to illness or accident for months

• Or worse, if they die• How long will it take to replace the key

person?

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Ownership - Share Protection

• Over 50% of business owners have not left instructions of what happens to their shares in their Will

• 16% of business owners had no idea what would happen to their shares & had never thought about it

• 20% acknowledged that their beneficiaries would become active in the business

• Source: Legal & General State of the nation’s SME report, March 2015

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Family - Relevant Life Plan• Tax efficient life assurance plan• Allowable business expense*• Set up by the business for a director

or an employee• Benefits paid to the family of director

/ employee

The level and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends upon individual circumstances

*Check with local inspector of taxes

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Consider this..• Who would pay the business debt?• Who are the key people in your

business?• What would happen to your shares?• Do you have life assurance, is it tax

efficient?

The level and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends upon individual circumstances

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Consider this…• Would you rather leave a business asset of

business debt to your family?• If you were shown a way of maintaining

the sales revenue, for a small cost if this happened, would you do it?

• Do you want your family to inherit the shares in your business?

• Do you want to be able to provide for your family if you die?

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If you don’t take precautions then you are

vulnerable

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How to keep your business in business

• For all attendees of the webinar I’m offering a no obligation 1 hour review

• Just send me a email with your contact telephone number by close of business tomorrow

[email protected]

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Questions

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BizSmart aims to help business owners of small and medium sized businesses to create value and scale their businesses through sound practical business support by providing insight, Clarity combined with a real determination to help you succeed. 

You can access webinars and presentations like this and more besides through our SmartRoom service hereYou can read the associated blog and listen to a live recording of this presentation by clicking here

You can read Simon’s profile here

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•Need a sounding board for your ideas?•Need to know what to prioritise?•Want someone to challenge your assumptions?

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